NatWest CC closure

Mike12421

I have just applied for the Barclaycard Initial and was accepted. At the end it said that once I receive my card I can transfer a CC balance to them when I call to activate it. However when you read the summary of the card on the main webpage, in the section for "Balance Transfers" it simply states "N/A".

Will I be able to transfer my balance? Or will I now be using this card to simply strengthen my credit rating.

On a side note, would it be best for me to have several utility bills etc be paid out from the Barclaycard, and then have part of income transferred from my HSBC current account each month to pay it back? Will this help my rating?

NickX

Bismarck wrote: »

could they ramp up the minimum repayment terms then to say 5% (or 10% if you want to be extreme) to push you into breaking the terms & conditions?

I suspect they do reserve the right to change the Minimum Payment in the Terms and Conditions.

NickX

Mike12421 wrote: »

However when you read the summary of the card on the main webpage, in the section for "Balance Transfers" it simply states "N/A".

I don't think Barclaycard Initial offers a promotional rate,so you need to check what rate of interest they would charge you a Balance Transfer compared to the rate that you are currently paying.

It may be best just to use it as you have suggested to pay your essential bills, then pay off in full and ontime every month.

Bismarck

NickX wrote: »

I suspect they do reserve the right to change the Minimum Payment in the Terms and Conditions.

but then again their long-term goal is to have you paying interest forever so as long as it suits them they'll keep the cash cow alive as long as possible....doesn't help the OP though but I've kind of answered my own question...;)

benf90

NickX wrote: »

They have to allow the customer to continue repaying the debt on whatever terms have been agreed and they will simply continually lower the Credit Limit to equal the Current Balance until they both reach zero.

Sorry to bring up an old thread but I was just reading through and thought I'd make a quick point.

In the case of Egg, the credit limit isn't continually lowered.

What happens is an internal status is placed on the card which automatically declines any attempted transactions. The credit limit stays exactly the same.

As far as credit reference agencies are concerned the account will still show as open. Once the balance is zero they just change the card status (internally and with the CRAs) to closed/settled. The status applied with the CRAs is exactly the same as if the customer had closed the account themselves, there's no way to differentiate it.

If they continually lowered the credit limit it would show up with the CRAs, leaving a very low limit when the account shows as closed. As this isn't the way in which Egg prevent transactions from going through there's no need for anyone to worry about the effect a continually lowered credit limit could have on their credit report.

NickX

benf90 wrote: »

there's no need for anyone to worry about the effect a continually lowered credit limit could have on their credit report.

Thanks very much for this info.